Record surge of defense giants: how the war against Ukraine has turned into a gold mine for the arms lobby

Revenue for the world’s largest arms producers reached a record $679 billion in 2024, and the key driver of this growth remains Russia’s war against Ukraine.

This is stated in a report by the Stockholm International Peace Research Institute (SIPRI), published on 1 December.

Along with the war in Gaza, it is specifically the needs of the Ukrainian front that are pushing NATO countries to increase defense budgets and urgently reorder weapons.

European manufacturers (excluding Russia) increased their revenues by 13% to $151 billion, largely thanks to supplies to Ukraine. The Czech company Czechoslovak Group showed the sharpest growth in the world — up 193% to $3.6 billion— after becoming one of the key suppliers of artillery shells for the Ukrainian Armed Forces under an international initiative.

U.S. companies, which account for nearly half of global revenue — $334 billion — also posted growth, a significant part of which is tied to replenishing allies’ arsenals and supplying systems that ultimately support Ukraine’s defense. At the same time, SIPRI notes that major rearmament programs, including the F-35, continue to suffer from delays and cost overruns.

Against the backdrop of record industry income, researchers warn that access to critical minerals and raw materials, as well as export restrictions from China, threaten to complicate long-term plans to maintain high-intensity military production — including for the continued supply of weapons and ammunition to Ukraine.